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Dear friends,
The 2025 Legislative Session has entered its home stretch with three weeks to go before our constitutional adjournment deadline, June 29. Even though it's a busy time at the Capitol, my colleagues and I are working across party lines to protect Oregonians and address impacts to our state's economy from chaos at the federal level.
These last two weeks of session will be very busy, but the Legislature must stay alert to federal actions and possible military intervention into Oregon. We must protect and exercise our state's rights.
On June 5, the Senate approved record funding for Oregon's K-12 schools while expanding accountability for student outcomes. SB 5516, which passed on a bipartisan 26-3 vote, dedicates $11.4 billion to the State School Fund, the primary state funding source that school districts use to pay educator salaries, buy textbooks, maintain schools, and serve more than 545,000 students across the state. This investment fully matches the request made by Governor Tina Kotek in the Governor's Recommended Budget, including a $512 million increase to current service level.
The Senate also passed SB 141 by a vote of 18-11, which creates new student success metrics, strengthens district accountability for student outcomes, provides coaching and support to struggling districts, and helps schools focus more on students and less on paperwork. New accountability metrics include eighth-grade math proficiency and kindergarten through second-grade regular attendance rates, both of which are indicative of future success in high school. The legislation establishes consequences for districts that do not meet performance targets, including mandatory coaching from the Oregon Department of Education and increasing levels of oversight and involvement from the department if issues persist. Interim assessments will be used to track student progress so schools can make adjustments to improve student learning in real time.
Below you will find information on:
- Transportation Package Summary
- May Revenue Forecast
- Measure to Protect Oregonians' Privacy Signed by Governor
- Open Positions on State Boards & Commissions: Applications Due June 20
- ODVA to Host 2025 Veteran Benefit Expo, 80th Anniversary Celebration
I hope this information is helpful and informative for you or someone you know. As always, feel free to share your comments, questions or concerns with me by phone, mail or e-mail.
Transportation Package Summary
On Monday, the co-chairs of the Joint Committee on Transportation Reinvestment introduced the Oregon Transportation Reinvestment Package. HB 2025 follows more than a year of public engagement, stakeholder conversations, and legislative workgroups. The proposal includes:
- Raising the existing 40-cent gas tax to 55 cents per gallon — with a 10-cent increase in January 2026 and another 5-cent increase in 2028. That's shy of the 20-cent-per-gallon increase Democrats floated earlier this session;
- Indexing the gas tax to rise with inflation;
- A new "transfer tax" equal to 2 percent of the price of new cars sold in the state and 1 percent on used cars worth more than $10,000. The earlier proposal suggested 1 percent on all car sales. Funding from the new tax would go toward two highway megaprojects — on Interstate 5 in Portland's Rose Quarter and the Abernethy Bridge on Interstate 205 — and fund multimodal safety programs;
- A "road usage charge" designed to wean Oregon off the gas tax by charging drivers of electric vehicles and highly fuel efficient vehicles a fee based on miles driven. The new framework would set the per-mile rate at 5 percent of the state gas tax for passenger vehicles and 10 percent for commercial delivery vehicles;
- Increasing a tax dedicated to transit service that Oregon workers pay from their paychecks from 0.1 percent to 0.3 percent. That's well above the 0.08 percent increase Democrats first proposed, but under the 0.4 percent increase that transit agencies have pushed for recently;
- Doubling the existing 0.5 percent tax on new car sales that vehicle dealers currently pay for the "privilege" of selling cars in Oregon. That money would go toward rail services and projects; and
- Streamlining and simplifying the state's weight-mile system for taxing heavy trucks and changing the state’s method of taxing diesel fuel.
HB 2025 is having public hearings this week in the Joint Committee on Transportation Reinvestment.
May Revenue Forecast
On May 14, the Oregon Office of Economic Analysis (OEA) released a sobering revenue forecast. Below is a summary of the forecast. Three months of economic chaos on the federal level is projected to shrink state resources by more than $755 million. Oregon is being acutely impacted by President Trump's tariffs, which have hindered Oregon's trade-heavy economy. Our state's economy relies more on manufacturing and trade than most states, and it is especially impacted by tense trade relationships with countries like China. The traffics also stifle growth for local business, since the federal government lacks a consistent, coherent economic plan. They also hit working families hard with rising costs. While Oregon is better positioned than many other states to weather this storm, we're preparing by budgeting with an eye on the future.
Revenue Outlook
2025-27 Net General Fund revenue is $35.6 billion, down $337.1 million from the March 2025 forecast. The 2025-2027 General Fund net resources are now $37.4 billion versus March's projected net estimate of $38.2 billion, a decrease of $755.7 million. Lottery revenue for the 2025-27 biennium is down $42.3 million from the March 2025 forecast.
Reserve accounts as of March were $978 million (Education Stability Fund) and $1.76 billion (Rainy Day Fund). The projected ending balances for the 2023-25 biennium reserve account are: Education Stability Fund ($1.01 billion) and Rainy-Day Fund ($1.91 billion). The Rainy-Day Fund is projected to receive $334.7 million following the end of the 2023-2025 Biennium.
Kicker Outlook
A personal kicker of $1.639 billion is projected for 2025. Corporate tax revenue of $915.9 million is projected to be dedicated to K-12 education spending in 2025-2027.
OEA Economic Outlook
The overall economic forecast reflects sluggish national growth and a mild deceleration in Oregon’s labor market. Oregon’s employment fell short of expectations in Quarter 1 2025, and the unemployment rate rose to 4.6 percent, up from 4.1 percent a year ago. Personal income growth also came in below forecast, with Quarter 1 income data down 0.8 percent from March projections.
Looking ahead, population growth is expected to remain modest, averaging 0.5 percent annually through 2035. While labor market conditions remain relatively stable, the forecast notes a heightened risk of recession and continued uncertainty tied to national trade and fiscal policy.
OEA Corporate Activity Tax (CAT) Projections
Anticipated revenues for the current biennium (2023-25) are down $21.8 million to $2.74 billion. For 2025-27, projected revenue is now $3.07 billion, down $44.4 million from March.
Measure to Protect Oregonians' Privacy Signed by Governor
Tech companies and data brokers have made a multibillion-dollar business out of collecting and selling the information that is generated when people use the internet or carry their smartphones anywhere. On May 21, I was proud to carry to passage in the Senate a bill to strengthen privacy protections around this data, banning the sale of data on a person's precise location or any personal data on children.
HB 2008, which I carried to unanimous passage in the Senate, adds new safeguards to the Oregon Consumer Privacy Act, which I championed in 2023. That law already requires businesses to limit the collection of personal data, keep it secure, and provide extra protection for the data of children and teens.
The measure passed this session prohibits companies from selling data that pinpoints within 1,750 feet a consumer's present or past location or a location of their connected device. It also widens the age range of children whose personal data of all kinds cannot be sold; it applies those extra protections to kids under 16 instead of ages under 13.
By banning the sale of precise location data and shielding children’s information, we’re putting Oregon at the forefront of data privacy nationwide. Oregonians have a fundamental right to privacy, and HB 2008 ensures that right is protected in our digital age. It passed the Senate on a unanimous vote.
Open Positions on State Boards & Commissions: Applications Due June 20
Are you looking for a way to serve your community while having an impact on issues important to you? Consider applying to serve on one of the Governor's boards or commissions. By serving on a state board or commission, you can:
- Contribute to state government and serve your fellow Oregonians;
- Be part of statewide decision-making;
- Participate in developing a wide variety of important governmental policies;
- Have an impact on issues important to you and your community; and
- Learn more about state government and how it works.
Members of the Governor's boards and commissions are vital participants in statewide decision-making and have opportunity to participate in developing a wide variety of important governmental policies. To learn more about the board system and how to apply, click here. Applications are due by June 20, 2025. Questions can be directed to the Executive Appointments Office at executive.appointments@oregon.gov.
ODVA to Host 2025 Veteran Benefit Expo and 80th Anniversary Celebration
The Oregon Department of Veterans' Affairs (ODVA) recently announced the return of its annual Veteran Benefit Expo, the state's largest veteran resource event, on June 16 at the Salem Armory Auditorium (2310 17th St. NE). This marks the first in-person Expo since 2019 and will also feature a special 80th Anniversary Celebration of ODVA beginning at 10 a.m.
Organized by the ODVA and presented in partnership with the Oregon Lottery and Oregon Military Department, the Veteran Benefit Expo is a one-of-a-kind event and a one-stop shop for Oregon veterans of all eras and walks of life to learn about and access the full range of their earned benefits and local resources.
More than 65 participating agencies, nonprofits and service providers will be on hand to provide in-depth information and direct services across a wide range of benefit areas, including health care, disability claims assistance, housing, emergency assistance, long-term care, mental health, education, business, recreation and more.
This year's Expo will also celebrate ODVA's eight decades of service to Oregon's veteran community, kicking off with the 80th Anniversary Ceremony at 10 a.m. on the Armory Auditorium stage, which will be immediately followed by a cake cutting and the opening of the Expo. The public is invited to attend.
The Veteran Benefit Expo was first held in 2015 at the Salem Convention Center in honor of ODVA's 70th anniversary and has grown to become the agency's signature outreach event, drawing an estimated 500 to 600 veterans each year. Since its inception, the Expo has traveled to different regions of the state, with plans to continue rotating in future years to ensure broad access to benefits by the state’s diverse veteran population.
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